·  Value of Production maintains an upward trend in May 2008

Value of Production Index (VaPI) for the manufacturing industry continued to grow as it posted an increase of 9.1 percent in May 2008, according to the preliminary results of the Monthly Integrated Survey of Selected Industries (MISSI). Significant expansions in production was exhibited in basic metals with a year-on-year growth of 48.2 percent, followed by other major sectors that posted two-digit increases, namely: leather products, wood and wood products, footwear and wearing apparel, food manufacturing, rubber and plastic products, and beverages. Refer to Tables 1-A and 7.

Likewise, VaPI recorded a month-on-month increase of 2.9 percent in May 2008. Thirteen (13) of the 20 major sectors reported increases in production, with two-digit increases observed in the following: publishing and printing, tobacco products, basic metals, wood and wood products, and leather products. Refer to Tables 1-A and 7.

·  Volume of Production grows at a slower rate in May 2008

Volume of Production Index (VoPI) also posted a year-on-year increase of 4.7 percent in May 2008. Major sectors with two-digit growth were observed in the following: leather products, footwear and wearing apparel, wood and wood products, basic metals, food manufacturing, beverages, and rubber and plastic products. Refer to Tables 1-B and 8.

On a month-on-month basis, VoPI registered a slower growth of 0.6 percent in May 2008. Twelve (12) of the 20 major sectors exhibited increase in factory output, with two-digit increments noted in publishing and printing, tobacco products, and basic metals. Refer to Tables 1-B and 8.

·  Value of Net Sales accelerates at a slower rate in May 2008

On a year-on-year basis, Value of Net Sales Index (VaNSI) gained by 6.5 percent in May 2008. This maybe attributed to the sales performances of the following major sectors: leather products, petroleum products, wood and wood products, basic metals, paper and paper products, and food manufacturing. Refer to Tables 2-A and 9.

Moreover, VaNSI on a monthly comparison, recovered by 4.4 percent from a drop of 1.8 percent in April 2008. This was brought about by the month-on-month increases observed in 14 major sectors, with two-digit increments reported by the following: leather products, petroleum products, wood and wood products, and publishing and printing. Refer to Tables 2-A and 9.

·  Volume of Net Sales posts positive growth in May 2008

Volume of Net Sales Index (VoNSI), on a year-on-year basis, slightly grew by 3.0 percent in May 2008. This was due to the two-digit increases reported by four (4) major sectors, offsetting the two-digit decreases reported by five (5) major sectors. Refer to Tables 2-B and 10.

Meanwhile, on a monthly basis, VoNSI climbed 2.1 percent in May 2008 from the previous month's decline of 2.6 percent. This was due to the impressive sales performances of the following major sectors: leather products, wood and wood products, and publishing and printing. Refer to Tables 2-B and 10.

·  Capacity Utilization

Average capacity utilization in May 2008 for total manufacturing was estimated at 80.8 percent. Ten (10) major sectors that registered more than 80% capacity utilization rates were the following: basic metals, food manufacturing, petroleum products, footwear and wearing apparel, leather products, paper and paper products, miscellaneous manufactures, chemical products (excluding plastic products), electrical machinery, and rubber and plastic products. Refer to Table 6.

The proportion of establishments that operated at full capacity (90% to 100%) was 10.5 percent in May 2008. More than half or 59.4 percent of the establishments operated at 70% to 89% capacity while 30.1 percent of the establishments operated below 70% capacity.

·  Response Rates

The response rates for the May 2008 MISSI and PPS are 90.7 percent and 93.9 percent, respectively. Refer to Tables 12 and 13.

                                                     r-revised

·  Technical Notes

The 1994 based MISSI indices and the PPI will have the December 2007 data as the last of the series. Only the 2000 based series will be continued in 2008.

Starting with the February 2008 issue, a revised industry disaggregation of the MISSI indices and PPI will be adopted to conform to the 1994 PSIC groupings. Rubber and Plastic Products is a new major sector, consisting of two subsectors, namely: Rubber Products and Plastic Products. Rubber Products was previously a major sector while Plastic Products was one of the sub-sectors of Chemical Products.

With previously seven (7) subsectors, the major sector of Chemical Products has now six (6) subsectors, namely: Basic Chemicals and Industrial Gases, Fertilizers, Paints, Drugs and Medicines, Cosmetics and Toilet Preparations, and Miscellaneous Chemicals.

The major sector of Machinery except Electrical has been split into two subsectors, namely: Machinery and Equipment, n.e.c. and Office, Accounting and Computing Machinery.

The corresponding weights of the above major sectors and sub-sectors have been recomputed to allow for the revised computation of the indices.

Thus, beginning the February issue, the VaPI, VoPI, VaNSI, VoNSI and the revised PPI for Total Manufacturing for all months of 2008 are computed based on the revised industry disaggregation.

Starting 2008, weights for the PPI and Capacity Utilization Rates are based from the results of the 2005 Annual Survey of Philippine Business and Industry for manufacturing establishments with average total employment of 20 and over.

Data of non-responding sample establishments are estimated based on previous records and other available sources. Revisions to the preliminary estimates are done upon receipt of actual reports of late respondents.
 

Notes:

* - new sector in the 2000-based series.

b/ - Less than 0.1 percent decrease.

Sectors are ranked according to their contribution to the overall 2000-based May 2008 growth rate.

Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.

Month-on-month growth rates are computed by dividing the current month index by previous month index less 1.

Notes

* - new sector in the 2000-based series

b/ - Less than 0.1 percent decrease.

Sectors are ranked according to their contribution to the overall 2000-based May 2008 growth rate.

Year-on-year growth rates are computed by dividing the current month index by previous year same month index less 1.

Month-on-month growth rates are computed by dividing the current month index by previous month index less 1.

Note:

* - new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based May 2008 growth rate.

Year-on-year growth rates are computed by dividing the current month value of net sales by previous year same month value of net sales less 1.

Month-on-month growth rates are computed by dividing the current month value of net sales by previous month value of net sales less 1.

Note:

*  -   new sector in the 2000-based series

Sectors are ranked according to their contribution to the overall 2000-based May 2008 growth rate.

Year-on-year growth rates are computed by dividing the current month volume of net sales by previous year same month volume of net sales less 1.

Month-on-month growth rates are computed by dividing the current month volume of net sales by previous month volume of net sales less 1.

Source:   National Statistics Office
                 Manila, Philippines